A new year means new taxes and less money in taxpayers’ pockets, says the Canadian Taxpayers Federation.

Beginning in 2013, bracket creep will cost Manitobans making $45,000 another $11 a year. Bracket creep occurs when inflation pushes taxpayers into higher tax brackets with no increase in real purchasing power.

Eleven dollars a year may not sound like a lot, but the impact is cumulative, said CTF prairie director Colin Craig. That same taxpayer earning $45,000 a year is now paying $160 a year more than he or she did a decade ago. Someone earning $75,000 a year is paying $550 more than he or she did a decade ago.

“The bottom line is bracket creep is a very secretive form of taxation and most people don’t even know it’s going on,” Craig said. “We have a provincial government that likes to spend money and they see no problem taking more and more from taxpayers each year.”

Manitoba, Prince Edward Island and Nova Scotia are the only provinces that have not eliminated bracket creep.

“Unfortunately, Manitoba is one of the holdouts,” Craig said. “Most provinces have addressed this problem.”

A provincial government spokesperson said increases in personal tax exemptions — $250 in 2013 — more than offset the impact of bracket creep.

“With these increases, another 5,500 Manitobans will be removed from the tax rolls and the savings will total $19.1 million,” the spokesperson said.

On the federal front, Canadian Pension Plan (CPP) and Employment Insurance (EI) premiums are also set to rise in 2013. A single person earning $45,000 a year in Manitoba can expect to pay an extra $84 in CPP and EI premiums in 2013.

“EI and CPP contributions are just like taxes as people have no choice but to pay them,” Craig said.

Eleven dollars a year may not sound like a lot, but the impact is cumulative, says CTF prairie director Colin Craig. That same taxpayer earning $45,000 a year is now paying $160 a year more than he or she did a decade ago. Someone earning $75,000 a year is paying more than $550.

"The bottom line is bracket creep is a very secretive form of taxation and most people don't even know it's going on," Craig said. "We have a provincial government that likes to spend money and they see no problem taking more and more from taxpayers each year."